S&P Global Mobility last week said it acquired Market Scan Information Systems Inc., of Camarillo, Calif., to bolster its client offerings.
Market Scan aggregates U.S. car pricing and incentive data. More than 10,000 U.S. dealerships, mostly new-vehicle stores, use the company's payment calculation tool called Automotive Payments as a Service, which provides precise vehicle pricing.
S&P Global Mobility, a Southfield, Mich., division of S&P Global, provides automakers and suppliers with data and analytics.
KPMG Corporate Finance, RL Frey Inc. and MW Juron Automotive Consulting were Market Scan's consultants for the deal. The purchase price for the transaction announced Feb. 16 and other financial terms of the deal weren't disclosed.
Rusty West founded Market Scan in 1988 with his father, Russell, and was CEO of the company. He will remain with the business as strategic adviser for S&P Global Mobility. He will support the integration of Market Scan into S&P, including new product development and strategies to support the auto industry, especially in the digital retail sector.
Market Scan's estimated 90 employees also will transfer to S&P.
"It was tough for me to consider even doing something like this because it's been in my family for over three decades," West told Automotive News, noting he's been in talks with S&P for more than a year. "The culture at S&P is very much like the culture at Market Scan and they were very clear that all the members of the Market Scan family would be welcome and very well taken care of and that was what we were looking for."
S&P said Market Scan will complement its data offerings.
"One of the big opportunities that we have to bring Market Scan to the fullest is to really leverage their data assets and strengthen our products and services that we provide to OEMs across the country," Dave Mondragon, managing director of pricing and incentive solutions for S&P Global Mobility, told Automotive News.
S&P's data and insights include identifying which customers are in the market for new vehicles, determining when and why they are looking, and predicting the next vehicle they will purchase, he said.
"What we did not have before [Market Scan] is detailed information on vehicle pricing and this is really a core competency that fills out our portfolio," Mondragon said.
This vehicle pricing information will help S&P advise clients on customer loyalty, retention and conquest business, Mondragon said.
It also will show which customers most likely will migrate to any product within an automaker portfolio, which is especially key with new products such as EVs, he said.
"The future of the business will focus on customer marketing with specific customer incentives down the road curated and personalized for every customer," Mondragon said.